What Is Permanent Working Capital

question 88

Multiple Choice

What is permanent working capital?

• A) the amount that a firm must keep invested in its short-term assets to support its continuing operations
• B) the difference between the actual level of investment in short-term assets and the amount that a firm must keep invested in its short-term assets to support its continuing operations
• C) the amount that a firm keeps invested in its short-term assets to support its continuing operations which are financed by short-term debt
• D) the amount that a firm keeps invested in its short-term assets to support its continuing operations which are financed by long-term debt

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Definitions:

Alpha Wave

A type of brain wave detected by electroencephalography (EEG) that indicates a state of physical and mental relaxation while being awake.

REM Rebound

The phenomenon where a person experiences increased amounts of REM sleep after being deprived of REM sleep in previous nights.

Sleep Spindles

Short bursts of brain activity that occur during stage 2 of the sleep cycle, associated with sleep maintenance and cognitive functions like learning and memory.

NREM-2 (N2)

A stage of sleep that is part of non-rapid eye movement sleep, characterized by specific brain and sleep features such as sleep spindles.